Flow Capital (FW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached CAD 2.5 million, up 46% year-over-year and 18% sequentially, marking a record quarter.

• Recurring free cash flow rose 169% year-over-year to CAD 638,000 in Q3 2024.

• Book value per share at CAD 1.225, up 29% over two years, but slightly down from CAD 1.255 in the previous quarter.

• Total assets reached CAD 71.4 million, a 12% increase since December 31, 2023.

• Achieved 19 consecutive quarters of positive free cash flow since Q1 2020.

Financial highlights

• Net loss of CAD 752,000 in Q3 2024 compared to net income of CAD 20,000 in Q3 2023.

• Basic and diluted EPS of (CAD 0.0246) in Q3 2024 versus CAD 0.0006 in Q3 2023.

• Portfolio-level IRR of 24.8% from senior secured loan book since March 2018 through September 2024.

• Weighted average shares outstanding decreased to 30.6 million from 32.5 million year-over-year.

• Operating expenses remained stable at approximately CAD 3.2 million per year for five years.

Outlook and guidance

• Expectation to remain profitable and continue improving operational efficiency as the business scales.

• Management expects continued growth and strong free cash flows.

• Recurring free cash flow for the year projected between CAD 1.5–1.9 million.

• Targeting 2,000–3,000 leads next year to sustain growth, up from 1,200 expected this year.